People like Blake Oglensky, an Associate lawyer at Weil, Gotshal & Manges LLP, might have reason to be concerned as US Marshals search for his mother, National Field Network’s (NFN) former CEO, Shari Nott. Olglensky along with his father, Jonothan, and three sisters Emma, Sophie, and Rachel, were all named in an Adversary Complaint to Recover Fraudulent Transfers Pursuant to 11 U.S.C. §§ 544 and 550 filing in New Jersey Bankruptcy Court. The multi-year bankruptcy of NFN took an interesting spin with the latest filing and after Nott was found in Contempt of Court and a US Marshals warrant was issued for her arrest. The story is as twisted and sordid as they come. After NFN was formed, Nott, along with Jack Jaffa, NFN’s managing member, and Christopher Crandell, NFN’s Chief Operating Officer, formed various other related entities in which they were owners, including, but not limited to: National Field Network Now, LLC d/b/a All the Right Movers, NFN Investments, LLC, NFN Claims, All the Right Movers, LLC, Trio Solutions, LLC, Commigrate Capital, LLC and Chik-Chak Shack, LLC.
The Thirty Thousand Foot View
Nott agreed to settle the Adversary Proceeding by providing a Consent Judgment in the amount of $1,485,000. Instead of doing that, she went on the run. Now, the Trustee is digging in deep and going for the jugular. According to the Trustee,
During the course of Nott’s employment [at NFN], the Debtor advanced Nott monies for lavish personal expenses, including funds related to the acquisition, renovation and maintenance of vacation homes in the Bahamas, luxury vehicles, including a Thunderbird, multiple Audi vehicles, a specialty Tesla vehicle and a Ford Explorer, to payment of contractors who did personal work for Nott at her various residences and/or other business ventures and credit card payments.
It gets better, though,
Most significantly, the Debtor made an advance to Nott’s attorney, Deutch & Associates, LLC, in the amount of $588,414.99 on October 10, 2012.1 The funds were used for Nott, individually, to purchase the real property located at 3 Abis Place, West Long Branch, New Jersey.
The majority of the funds, if not all, used by Nott to purchase the Abis Property were advanced by the [NFN].
According to court documents pertaining to the Abis Property,
Within weeks of the involuntary bankruptcy filing, by Deed dated April 24, 2018 and recorded May 2, 2018, Jonathan was added as an owner of the Abis Property for $1.00 consideration.
By Deed dated May 15, 2020 and recorded May 27, 2020, Nott and Jonathan sold the Abis Property for $910,000 [… .]
The Looting of NFN By Shari Nott, et al.
Building out further, on September 29, 2020, Jonathan purchased his and Nott’s current residence located at 646 Bray Avenue, Port Monmouth, New Jersey, for $580,000, which is now listed for sale at $824,900. Not stopping there, other than for Shari and Jonothan to remarry in order to invoke spousal immunity, Nott and Jonathan had an ownership interest in the real property located at 100 Oak Terrace, Freehold Township, New Jersey valued then at $212,000. This is important as it was several months AFTER the bankruptcy had been filed! It sold for $440,000.
Where the rubber meets the road; where Blake, his dad, and the sisters are on the hook is from this allegation from the Trustee,
Upon information and belief, Nott and Jonathan made various payments to, or for the benefit of, the Children Defendants [now all adults] for tuition, sport activities and other expenditures.
The Trustee was very precise in documenting the colleges attended, including pointing out that Blake Oglensky is now a lawyer, as well. Here is how it was put,
Upon information and belief, Nott paid for the post-secondary education and related expenses of all of the Child Defendants utilizing the funds that she improperly received [from] the Debtor [NFN], thereby allowing the Child Defendants to receive an advanced education without the necessity of student loans.
When we get into the following Counts: COUNT ONE Avoidance of Fraudulent Transfers Pursuant to 11 U.S.C. §§ 544 and 550 and N.J.S.A. § 25:2-25(b) and N.J.S.A. § 25:2-27 (Against All Defendants), COUNT TWO (Civil Conspiracy), and COUNT THREE (Imposition of Constructive Trust). Let’s break all of this down.
The Filing Against Shari Not and the Oglenskys
COUNT ONE
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- Debtor funded Nott’s purchase of the Abis Property as documented in the Accounts Receivable;
- On May 15, 2020, Nott sold the Abis Property and netted approximately $91,215.24, which represents the Abis Sale Proceeds;
- On September 29, 2020, Jonathan purchased the Current Residence, solely in his name, for $580,000;
- On June 21, 2021, Nott and Jonathan sold the Oak Terrace Property and received significant proceeds by way Oak Terrace Sale Proceeds;
- The funds from the Accounts Receivable, Nott’s interests in the Abis Sale Proceeds and Oak Terrace Sale Proceeds were transferred, utilized or dissipated by or for the benefit of the Defendants and to the detriment of the Debtor’s bankruptcy estate;
- Upon information and belief, the Abis Sale Proceeds and Oak Terrace Sale Proceeds were transferred by Nott to the Defendants and/or for their benefit, including to purchase the Current Residence;
- Nott transferred her interest in the Abis Sale Proceeds and Oak Terrace Sale Proceeds to the Defendants within four (4) years from the filing of the within Complaint;
- Upon information and belief, Nott transferred her interests in the Abis Sale Proceeds and Oak Terrace Sale Proceeds to the Defendants and to fund the purchase of the Current Residence, solely in Jonathan’s name, with actual intent to hinder, delay, or defraud creditors;
- Upon information and belief, Nott was insolvent at the time she transferred her interests in the Abis Sale Proceeds and Oak Terrace Sale Proceeds to the Defendants for, among other things, the purchase of the Current Residence by Jonathan;
- Nott received less than reasonably equivalent value in exchange for the sale proceeds from the sale of the Abis Sale Proceeds for the purchase of the Current Residence by Jonathan, and the Oak Terrace Sale Proceeds; and
- Nott received less than reasonably equivalent value in exchange for the transfer of assets to for the benefit of all Defendants, including for vehicles, college tuition and law school tuition provided to the Child Defendants.
COUNT TWO
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- Nott and Jonathan acted in concert to defraud the Debtor [NFN] and its Estate by orchestrating a scheme to render Nott insolvent and avoid her then-existing and future financial obligations to the Debtor and its Estate, all to the detriment of the creditors of the Debtor (“Scheme”);
- The Scheme was enacted between Nott and Jonathan immediately after the Petition Date, and at a time when Nott knew she was being investigated by the Committee and the Trustee;
- Nott and Jonathan intentionally enacted the Scheme so as to keep Nott’s assets out of the reach of creditors of the Debtor; and
- The Debtor [NFN] has and continues to suffer damages resulting from this civil conspiracy perpetrated by Nott and Jonathan.
COUNT THREE
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- On September 29, 2020, Jonathan purchased the Current Residence which was funded, at least in part, from the Abis Sale Proceeds and other ill-gotten gains through funds advanced and documented as part of the Accounts Receivable;
- Upon information and belief, Jonathan did not contribute any funds towards the purchase of the Current Residence at the time of closing in September 2020;
- Jonathan’s ownership of the Current Residence and other assets purchased and/or transferred by Nott is inequitable and unjustifiable, solely intended to shield Nott from the Debtors’ [NFN] creditors;
- At the time Jonathan purchased the Current Residence, Nott was already deposed by the Committee, and had received notice of the Trustee’s deposition; and
- At all times during the relevant time period, Nott was aware that she was being investigated for, and had significant liability to the Debtor’s [NFN] bankruptcy Estate.
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